Why Day Trade the DAX when there are Alternatives?

By Adam Woods


Germany has produced one of the most stable exchange mechanisms. Why day trade the DAX? You would be interested in it because it has good profits and the systems are very similar to international conventions. A group of 30 companies is used to measure the positioning on this grid in areas such as capitalization. Investors will then make the appropriate decisions.

If you are looking for templates in relation to the Frankfurt Stock Exchange then the Prime Standard is the place to be. The metrics that are commonly used include market capitalization and book volume. XETRA is the electronic trading system which helps to install the pricing structures. Dividends and cash distribution then flow back right into the index.

Finding ways to access the EU markets Why day trade the DAX in its locality? Germany has been distinguished as a strong manufacturing base within Europe. However you are advised to avoid transferring Dow Jones protocols into the new exchange without adequate conversions. A subscription to the Eurex data feed will cost you $9.00 on a monthly basis and it will help you to make the right estimations.

Why day trade the DAX on a consistent basis? It gives you fairly good returns and it is operated from a country with proven economic stability since World War II. The symbol for the exchange is FDAX. Under the contract value one point is equivalent to twenty five Euros. The EURUSD exchange rate hovers between 1.25 and 1.50 depending on the metrics.

In reality the points are equal to about $34.00 while the increments come in at 0.5 of a point or 12.50 EUR. A tick would cost you $16.90 and you have to work on an annual cycle that is staggered in different months. These include March, June, September and December. You are allowed to operate from 12.50 a right up to 3.00 pm on the Central Time slot.

Critical information about the exchange It must be noted that this is a gigantic contract which is worth about $225,000. This is greater than emini which comes in at $72,000. The S&P is slightly higher at $369,000. Why day trade the DAX on a daily basis? You require an overnight margin of 12,900 Euros which is about $17,415. On the other hand the intraday margin lies between $2,000 and $5,000.

It is worth noting that a low margin can increase the level of risk which you are facing. Do not work in environments where there is too much volatility or liquidity. The response to the question will guide you; why day trade the DAX? You need to be able to explore the great opportunities that this exchange offers to savvy business people.




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